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Story summary
- U.S. Federal Reserve Chair Jerome Powell faces a challenging start to 2026 as the Fed remains cautious after three rate cuts in 2025, with solid growth and inflation pressures shaping policy.
- U.S. President Donald Trump threatens to fire Powell and is considering candidates to replace him, adding political pressure around the central bank.
- A Supreme Court hearing on January 21, 2026 will address Trump's authority to remove Governor Lisa Cook, potentially influencing Fed governance.
- New regional presidents joining the Federal Open Market Committee may resist further rate cuts, complicating the Fed's decision-making process.
